As we have seen in past postings, both the S&P and the NASDAQ have been tracking the upward movement in their respective monthly cycles. The S&P target is in the 6200-6300 area.
The NASDAQ Composite will likely rally to 20500. The below-surface correction in the market has been concentrated in the big-cap technology stocks. These equities have a strong effect on the indices and have pulled the market down in an erratic trading range since December. Actually, most stocks in the NASDAQ have been rising. More effort is required to find stocks to buy with the market near all-time highs. Here are a pair of equities that are in a reasonably attractive position.
V.F. Corporation engages in the design, procurement, marketing, and distribution of branded lifestyle apparel, footwear, and accessories for men, women, and children. The stock was detected by a Cycles Research screen. The monthly strip in the three-up chart below is revealing. The stock topped in 2020, but the downtrend has been reversing to the upside. The relative strength has turned up and has been rising for more than six months. This is the minimum precondition that an investor should accept. The series of rising momentum lows in the weekly strip are bullish. The monthly histogram is favorable. In fact, the share price has risen 84% of the time from January 27th to April 5th over the last 44 years. The stock may advance to the $40-$45 range by yearend.
Chart 1: VF Daily, Weekly, Monthly
Chart 2: VF Monthly Histogram
Atlassian Corporation designs, develops, licenses, and maintains various software products globally. The stock is in an uptrend but can still be bought. As can be seen in the weekly and the monthly strips, the stock formed a base from late 2022. Relative price has broken downtrend lines. It is not too late to buy because the monthly momentum shows a series of higher lows and is one of the few NASDAQ technology stocks that is not overbought.
The monthly cycle points to wide swings in the share price but a higher close at yearend. The stock is likely to be in the 360-400 area by June.
Chart 3: Atlassian- Daily, Weekly, Monthly
Chart 4: Atlassian Monthly Cycle
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